Monthly Archives: October 2016

5 Important Reasons – Why Small Businesses Fail?

The following are the reasons that lead to failure of most small businesses.

1. Insufficient Capital:

Most business owners don’t make an accurate estimate about the capital needed to meet various financial requirements of the business in the beginning. Some of them have unrealistic expectations of incoming revenues from sales and don’t raise an adequate amount of capital for their start-up business.

Insufficient Capital

 

How to Manage your Finances Efficiently?

Since every business needs time to grow and get into full swing, it is advisable to gather enough funds to cover all costs and avoid situations that may force you to shut down your business.

There is professional accounting software that can help you keep a record of all financial transactions (expenditures and revenues) and also generate profit and loss statements. You can even consult professional financial planning advisors for good financial management.

 

2. Lack of Business Planning:

A solid, clear-cut and realistic business plan is must for a business to turn into success. A good business plan not only helps to figure out short-term or long-term goals, but also helps create a fine balance between the two.

Lack of Business Planning

Planning gives direction to your enthusiasm and channelizes your energy in the direction that would bring success to your business.

How to Get the Perfect B-plan for your Start-Up Business?

The best thing you can do is to hire a business planning consultant to design a roadmap for your business. A good business plan should include description of the business, vision, goals, work force requirements, problems with solutions and keys to ultimate success of the business.

 

3. Not Understanding The Customer:

Your business is likely to experience a setback if you don’t understand your customers’ wants and needs. For this you need to stay in direct touch with the customers and also ask for their feedback.

Understanding The Customers

 

Feedback from your customers is a valuable advice that will help you to know whether your product is still capturing the market or requires modifications.

How to get Feedbacks from Customers?

The best thing you can do is to do timely surveys to know what their interests are and figure out changes required in your present products and policies. You can use customer relationship management (CRM) tools to maintain touch with your customers.

 

4. Not Understanding the Market:

If you want to open a real estate agency, but you ignore the fact that you are in area which is already flooded with agencies, this is like inviting failure on your own.

Market Reasearch

This is a mistake many start-ups    do. They fail to figure out whether there is a scope to grow in the present market scenario. They are simply blinded by their passion which leads to quick failure of their business.

How to Investigate the Market?

If you are planning to setup a business, you will have to find an unmet need within a market and then work to fill it instead of forcing your services. As a startup, you should work to satisfy a need instead of creating a new one.

 

5. Over-expansion:

Most business owners think a business is successful only if it expands quickly. And here they fail. The aim of the business should be slow and consistent growth instead of fast and inconsistent results. Overexpansion will only lead to bankruptcy.

 

How to Avoid Problems with Growth and Expansion?

Even big commercial franchises such as fast-food restaurants study and analyze before they plan to target a new location. So, every startup should also research about local and regional demographics, latest trends, and future scope before you take a step towards the expansion.

 

5 Best Quotes on Building a Successful Startup

There was a time when riding a bicycle was the toughest job in the world. But after a series of trials and a few bruises, you finally learned how to balance properly.

The same is true with your business start-up. Many people give up after making a few mistakes in the beginning. But it’s not the end. If you truly believe in your passion and spirit, trials and obstacles seem less daunting.

The following post is a collection of quotes that can set you on the right path and re-focus on your goals, and help you leave fear and negativity behind.

Check out these inspiring quotes before you launch your startup.

1)   “The last 10% it takes to launch something takes as much energy as the first 90%.”
–Rob Kalin, co-founder of Etsy

Motivational Quotes

 

 This one is especially for startups. As they say well begun is half done and it takes a great deal to simply start. A great business plan can help you make a powerful start.

2)   Make your team feel respected, empowered and genuinely excited about the company’s mission.” – Tim Westergren, co-founder of Pandora

Motivational Quotes

The best way to create a sense of community among your team is by involving them in your mission. Now, what if your business lacks a mission? How will you inculcate coordination in your employees? A clear-cut business plan is the answer.

3)   “Unless you are a fortune-teller, long-term business planning is a fantasy.”
–Jason Fried, founder of 37signals

Motivational Quotes

What does this mean for you? We know you cannot stop thinking about your business turning into a multi-million dollar company. But as a start-up, it’s best to focus on short-term goals. The long term plans will fall into place.

4)   The strategy is to first know what you don’t know, the tactic is to grind, and the value is to remember: there are plenty of places to innovate.” –David Friedberg, founder of Weatherbill

Motivational Quotes

 Best places to innovate? The market.

You need to clearly understand what’s selling in the market, what is not and then plan accordingly. A good marketing plan can benefit your start-up.

5)   “Even if you don’t have the perfect idea to begin with, you can likely adapt.” –Victoria Ransom, co-founder of Wildfire Interactive

Motivational Quotes

It’s okay if you’re unsure of taking the first step towards starting your business. Get in touch with a business consulting firm, create a business plan and start your journey.